(Yicai Global) Feb. 28 -- Dutch milk major Royal FrieslandCampina N.V. has paid USD2 million to end its joint venture with beleaguered China Huishan Dairy Holdings Co., a company executive told Yicai Global.

Royal FrieslandCampina, the Netherland's biggest dairy firm has taken over Huishan's 50 percent stake through its Hong Kong subsidiary, thereby ending the two parties' three-year partnership, said Yang Guochao, senior vice-president of FrieslandCampina China.

The knock-down USD2 million price for the equity reflects the sorry state of Huishan, which filed for bankruptcy late last year. FrieslandCampina originally invested almost USD80 million in the JV three years ago and also acquired Huishan shares worth some USD30 million at the time.

Huishan provided raw milk for FrieslandCampina products under the terms of the partnership, though the Dutch firm will now look for new partners. The JV exit represents the first deal made by FrieslandCampina's new CEO Hein Schumacher, who took up the position at the start of the year.

FrieslandCampina ranked fifth in the global dairy industry last year, and was responsible for production, management and sales of products part of its joint venture brand Dutch Lady.

Huishan Dairy, previously with a market cap exceeding HKD30 billion, suffered a one-hour market crash in March last year, rendering its stock worthless. Soon after, the firm lost contact with its executive director and vice President Ge Kun who was responsible for its capital business.

The company has since defaulted on the repayment of several loans and its comprehensive net liability reached more than CNY10.5 billion as of the end of March, culminating in the bankruptcy petition.